Hrmg100 week 9

Robbins, Bergman, Stagg, Coulter Management 5e © 2008 Pearson Education Australia

HRMG100MANAGEMENT AND PEOPLE

WEEK 9(Chapter 9 of the textbook)

HUMAN RESOURCE MANAGEMENT FUNCTIONS

- RECRUITMENT- SELECTION- PERFORMANCE APPRAISAL


LEARNING OUTLINE

Human Resource Management (HRM) Importance, process, activities, environmental

factors, and industrial relations Planning, recruitment, selection,

orientation and training Employee performance management,

compensation/benefits, career development

Current issues


WHAT IS HRM?

HUMANRESOURCE MANAGEMENT

It is concerned with co-ordinating all matters in relation to an organisation’s most important asset – people!


PERSONNEL MANAGEMENTWhat is now often referred to as Human Resource Management (HRM) has developed from what was initially called Personnel Management – a series of functions which aimed to support (and control?) employees:

- Selection - Evaluation - Payroll- Training - Industrial Relations

But the function was largely carried out in isolation and without any interaction with them or even with overall organisational objectives - a “remote” section!


PHASES OF PERSONNEL MANAGEMENT

File maintenance: up until the 1960’s (paper files of course!)

Government Accountability: 1960s – 1970s

Gaining and maintaining Competitive Advantage for the Organisation: 1990s+


A NEW TITLE?

In some organisations today managers of the human resource function sometimes refer to themselves as:

MANAGER OF PEOPLE & CULTURE


The Importance of HRM Whether or not an organisation has a

formal HR department, all managers are involved with human resource decisions in their area.

Traditionally, managers had responsibilities for personnel administration; now the strategic importance of the HRM function is becoming evident.


SOME HRM OBJECTIVESLike other departments – Accounting, Research & Development etc – HRM must assist the organization in achieving its objectives:

Organizational effectiveness – employee selection, job satisfaction, productivity, low wastage, motivation, change, recognition, performance evaluation, rewards etc.

Profit – cost containment in the staffing area (downsizing etc)

Customer Service Ethical behaviour – social responsibility


WHY HRM POLICIES & PRACTICES HAVE CHANGED

Globalization: tariff reduction – greater competitiveness Higher Education levels: a demand for worker

empowerment/involvement Changed economy: move from agricultural economy to

manufacturing to knowledge economy Women in the workforce: Ageing population: Changed Industrial Relations system: reduction in trade

union power and influence Changed employment modes – fulltime, p/t, permanent,

temporary, casual (25% of w/f) etc.


IMPORTANCE OF HRM ‘Our people are our most important

asset.’ HRM can provide a sustainable

competitive advantage. Managers need to see their employees

as partners, not just as costs to be minimised or avoided.

HRM practices have been found to have a significant impact on organisational performance.


HIGH PERFORMANCE PRACTICES

Self-managed teams Decentralised decision making Training programs Flexible job assignments Open communication Performance based compensation Staffing based on person/job and

person/organisation fit


The HRM process

Eight activities for staffing the organisation and sustaining high employee performance three HR planning activities

recruitment, de-recruitment and selection orientation and training three retention activities

performance management, compensation and benefits, and career development


THE HRM PROCESS


INFLUENCES ON HRMEnvironmental factors that most directly influence the HRM process

- trade unions (Organisations that represent workers and seek to protect their interests through collective bargaining.)

- government laws and regulations in relation to industrial relations, and demographic trends.- demographics (Population features)- economic conditions


GOVERNMENT INFLUENCES ON HRMGovernments have greatly expanded their influence over HRM decisions by enacting a number of new laws and regulations Industrial Relations Legislation depends on

what political party has been in government and this in turn impacts the formal interactions between unions and an organisation’s management

Equal Employment Opportunity Legislation

Anti-discrimination Legislation

Occupational Health & Safety Legislation


INDUSTRIAL RELATIONS LEGISLATION Workplace Relations Act 1996 (Federal)

encouraged greater decentralisation by moving the setting of wages and conditions towards the enterprise level.

Individual Workplace Agreements allowed under the Australian Workplace Agreement (AWA) and further modified under Workplace Relations Amendment (WorkChoices) Act 2005.

FairWork Australia: minimum wages and conditions prescribed in February 2010.


RUDD/GILLARD INTERIMWORKPLACE ARRANGEMENTS

Legislated by the Commonwealth Government in February 2008, and to be effective until the Government’s new IR legislation is in place in 2010, it includes the following:

minimum wages according to industry sector ‘award’

38 hour week 4 weeks annual leave parental leave up to one year – no pay (eg.

maternity leave ) flexible work arrangements for parents


INTERIM WORKPLACE ARRANGEMENTS (2)

sick leave (minimum of five days) community service leave (eg. bushfires and

disaster relief) gazetted public holidays information in the workplace termination and redundancy payments as

per the industry sector ‘award’ long service leave (eg. 3 months leave on

full pay after 15 years continuous service)


FAIR WORK AUSTRALIA

Legislation incorporating the “Interim Arrangement” was passed in February 2011 and Fair Work Australia was established as a “Commission” to administer the FairWork Australia legislation.

This body replaced former Industrial Relation Commissions and Tribunals.


OTHER RELEVANT LEGISLATION Equal Employment Opportunity and Anti-

discrimination hiring and training decisions must be made without

regard to race, sex, religion, age, colour, national origin or disability

Affirmative Action programs that enhance the organisational status of

members of protected groups Workplace Safety

laws and regulations relating to Occupational Health and Safety (OHS)


DIFFERENT GENERATIONS Veterans – born before 1946 Baby Boomers – born between 1946 and

1964 Generation X – born between 1965 and

1979 Generation Y – born between 1980 and

1994*************************

Each ‘generation’ has different needs and expectations, and probably needs (and expects) to be treated differently in the workforce.


BABY BOOMERS Prime Minister – Malcolm Fraser/Gough

Whitlam Social markers – Decimal currency/Cyclone

Tracy Training focus - Technical Learning format – Formal/structured Learning environment – quiet classroom style Pop culture – Flare jeans/mini skirts Aspirational figures – JFK Audrey Hepburn Purchase Influences – Brand loyal Financial Values – Long-term needs; cash Ideal leaders – Command and control


GENERATION X Prime Minister – Bob Hawke/Paul Keating Social markers – Berlin Wall down; Newcastle

Earthquake Training focus – Practical applications Learning format – relaxed/interactive Learning environment – round table/relaxed Pop culture – roller blades/torn jeans Aspirational figures – Princess Di Andre

Agassi Purchase Influences – Brand switchers Financial Values – Medium term/credit savvy Ideal leaders – Co-operative


GENERATION Y Prime Minister – John Howard Social markers – September11; Bali bombing Training focus - Emotional; participative stories Learning format – spontaneous; multi-sensory Learning environment – café style (with music) Pop culture – body piercing; metrosexuals Aspirational figures – Richard Branson;Tiger:Paris Purchase Influences – no brand loyalty Financial Values – short term wants; credit

dependent Ideal leaders – consensus; collaboration


THE NEXT GENERATION?Those born after 1995 are called either:

Generation “C” – Creativity, Connectivity, Communicators, Collaboration. Content….

OR

Generation “Z” – the New Silent Generation

Active consumers; highly connected (digital natives)dot.com kids

What will be their workplace expectations and needs?


DEMOGRAPHICS Generation Y is the fastest growing

segment of the workforce.

By 2010, more than half of all workers in Australia were over age 40.

In 2006 of the 7 million people aged 45 years or more, 3 million (40 per cent) had retired from the labour force.


AN AGEING POPULATION Will create a demand for more health care

services

Will require a working population or tax system to support an older population

Can the older population become part of the solution?- working longer (beyond 65/7)- working in different ways- flexibility?


HUMAN RESOURCE PLANNINGThe right number and kinds of people in the right places, and at the right times performing efficiently and effectively current HR capabilities, with a HR

inventory future needs based on total revenue,

and managers try to establish the number and mix of human resources needed to reach that revenue

seek appropriate staff, and matching skills


A VACANCY EXISTS!WHAT HAPPENS NEXT?

Old view: fill it! And now!

Contemporary view: Do we want to keep this position?

Can we save a salary? Can we re-allocate these functions to

another person(s)? Do we need to employ a person with

different skills, qualifications, experience.


SELECTING AN EMPLOYEEThere are usually several applicants for most positions advertised. How do you get “the right person in the right place at the right time”?

Draw names from a hat? A Tattslotto type system? Choice based on qualifications? Choice based on experience? Potential? Appearance? A friend or family member?


RECRUITMENT & DERECRUITMENT

Managing shortages and excesses Recruitment

the process of locating, identifying and attracting capable applicants.

Issues to consider: e-recruiting, position, scope of recruitment.

Derecruitment techniques for reducing the labour supply within an

organisation.


DERECRUITMENT OPTIONS

Resignation Dismissal Redundancy/retrenchment Redeployment/transfer Lay-off Attrition Reduced work-week Early retirement Job sharing


SELECTIONThe process of screening job applicants to ensure that the most appropriate candidates are hired.

Use one selection device or several?


SELECTION Problems

rejecting candidates who would have performed successfully on the job (reject errors) or accepting those who ultimately perform poorly (accept errors).

Validity and reliability of procedures validity is the proven relationship that exists

between a selection device and some relevant job criterion.

reliability is the ability of a selection device to measure the same thing consistently.


SELECTION Devices

application forms e-applications written tests performance simulation test Interviews – individual or group background investigation – police checks referees physical examinations

What works best? devices that effectively predict for a given job


QUALITY OF SELECTION DEVICES AS PREDICTORS


ORIENTATION OR INDUCTIONIntroducing a new employee to his or her job and the organisation. work unit orientation familiarises the

employees with the goals of the work unit, clarifies how their job contributes to the unit’s goals, and includes an introduction to their new co-workers.

organisation orientation informs the new employee about the organisation’s mission, history, philosophy, procedures and rules.


EMPLOYEE TRAINING

Types Initial training (as part of an Induction

program) to prepare the new employee to perform at the organization’s standards and within the gambit of the organisation’s policies and procedures eg in a Call Centre

Most training is directed at upgrading and improving an employee’s technical skills as well as job-specific competencies


EMPLOYEE TRAININGMethods on-the-job training, job rotation,

mentoring and coaching, experiential exercises, workbooks and manuals, and classroom lectures

off-the-job training methods are classroom lectures, workbooks/ manuals, and simulation or experiential exercises

Extended/advanced study – eg. MBA PhD etc. Fullbright Scholarships.


PERFORMANCE MANAGEMENTEstablishing performance standards and appraising employee performance in order to arrive at objective human resource decisions

basis for merit pay increases and other rewards.

provide feedback to employees on how the organisation views their performance.

HRMG202 (PERFORMANCE MANAGEMENT) is a second year Unit at ACU


PERFORMANCE MANAGEMENTSome Appraisal methods

written essay – description of an employee’s strengths and weaknesses, past performance and potential

critical incidents - those critical or key behaviours that separate effective from ineffective job performance

rating scales – the employee is rated using a rating scale on a set of performance factors


PERFORMANCE MANAGEMENT Some further Appraisal methods

behaviourally anchored rating scales (BARS) – appraises an employee using a rating scale on examples of actual job behaviour.

multi-person comparisons (sometimes referred to as rankings) compare one individual’s performance with that of others.

objectives - how well the employee accomplishes a specific set of objectives that have been determined to be critical in the successful completion of the job.


PERFORMANCE MANAGEMENTAnother Appraisal method:

360-degree feedback - a performance appraisal method that utilises feedback from supervisors, employees and co-workers.


COMPENSATION AND BENEFITS

Appropriate compensation systems help retain competent and talented individuals.

base wages and salaries, add-ons, incentive payments, and other benefits and services.

Skill-based pay A pay system that rewards employees for the job

skills they can demonstrate. Variable pay

A pay system in which an individual’s compensation is contingent on performance.

Is money really an incentive for workers?


CAREER DEVELOPMENT

Career term advancement (‘she is on a management career

track’) profession (‘he has chosen a career in accounting’) a lifelong sequence of jobs (‘his career has included

12 jobs in six organisations’) Career today

The best match between what you want out of life and your interests, abilities and market opportunities


CAREERS

There seems to be considerable evidence today that people are likely to have 2 or 3 unrelated careers:

Eg. An increasing number of people become ministers of religion (Protestant) after life experience in other fields.

What about you?


SOME CURRENT ISSUES IN HRMDownsizing - the planned elimination of jobs in an organisation:

Expect disruptions

Individuals who are being let go need to be informed as soon as possible

Provide assistance

Provide counsellors for remaining employees to talk to, hold group discussions, and communicate to them their importance


SOME OTHER CURRENT ISSUESClosure of a Business – - retrenchment- employee separation payments- union response- worker response

Going off shore – eg. Nike, Pacific Group- employee response- union response- public response


SOME OTHER CURRENT ISSUESDiversity positive acknowledgement of ways in which

we are different from one another

not always a simple goal to achieve

difficult to create a diverse and inclusive workplace unless some focus is applied in certain HRM and people management practices - Recruitment, Selection, and Orientation and Training


Some Other Current Issues

Sexual harassment any unwanted activity of a sexual nature

that affects an individual’s employment, performance or work environment.

Organisations liable if they haven’t: developed a policy on sexual harassment educated employees on that policy created a procedure that employees are to

follow if they feel victimised investigated any complaints or allegations of

sexual harassment


Current issues

Work-life balance employees cannot (and do not)

just leave their families and personal lives behind when they go to work

family-friendly benefits Benefits that accommodate employees’ needs

for work–life balance Positive outcomes when individuals are able

to combine work and family roles Employees with family-friendly workplace

appear to be more satisfied on the job


CURRENT ISSUES

Occupational Health and Safety 2,900 Australian employees die every year 650,000 are injured

Development of policies and practices that deal with accident prevention OHS issues such as AIDS/HIV and hepatitis ultraviolet radiation from the sun for outdoor workers,

and the air quality indoors for office workers dominant factor in workplace accidents is

complacency eg. Fork-lift drivers?

Workplace Safety

http://au.youtube.com/watch?v=MwCyVku1HvI


THE CHANGING ROLE OF WOMEN IN THE WORKFORCE

Women now make up about 50% of the workforce

The participation of women in the workforce is about 55% - growing faster than the participation of men in the workforce – about 70%.

Women occupy about 50% of management positions, but only about 7% of “Top” management positions

Women have to face a “glass ceiling” in relation to their career paths

Changing roles of men and women in the home and in the workforce


THE POTENTIAL OF HRM By hiring certain people, or groups of

people, organisations can attempt to:

maintain the status quo strengthen the current organisational

culture prepare an organisation for change enable an organisation to change –

including changing its organisational culture.

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